LIXIL : Consolidated Financial Results for the Third Quarter Ended December 31, 2025 (International Financial Reporting Standards)

January 30, 2026

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (For investment analysts and institutional investors)

(Amounts less than one million Japanese yen are rounded)

1. Consolidated Financial Results for the Q3 of FY Ending March, 2026 (April 1 through December 31, 2025)

   1. Consolidated Operating Results (Percentages indicate year-on-year changes)

      	From Continuing Operations
      	Revenue		Core earnings		Operating profit		Profit before tax		Profit
      	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      FYE 2026 Q3	1,138,503	â–³0.2	36,506	17.5	30,450	7.2	20,076	â–³5.6	12,411	170.4
      FYE 2025 Q3	1,140,456	1.6	31,070	16.7	28,406	11.6	21,276	11.0	4,590	â–³59.4

      	Including Discontinued Operations
      	Profit		Profit attributable to owners of the parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      	Million yen	%	Million yen	%	Million yen	%	Yen	Yen
      FYE 2026 Q3	12,411	173.9	11,807	175.7	76,440	321.9	41.08	41.08
      FYE 2025 Q3	4,531	â–³29.7	4,283	â–³36.8	18,119	â–³50.7	14.91	14.91

      Note: Core earnings is calculated by deducting the cost of sales and selling, general and administrative expenses (SG&A) from revenue.

   2. Consolidated Financial Position

   	Total assets	Total equity	Equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent to total assets
   	Million yen	Million yen	Million yen	%
   FYE 2026 Q3	1,939,063	670,863	667,849	34.4
   FYE 2025	1,830,804	620,070	617,886	33.7

2. Cash Dividends

   	Annual dividends per share
   	End of Q1	End of Q2	End of Q3	End of period	For the year
   FYE 2025 FYE 2026	Yen - -	Yen 45.00 45.00	Yen -	Yen 45.00	Yen 90.00
   FYE 2026 (forecast)			-	45.00	90.00

   Note: Revision of dividends forecast after the recent announcement: None

3. Consolidated Forecast for the FY Ending March, 2026 (April 1, 2025 through March 31, 2026)

   (Percentages indicate year-on-year changes)

   	From Continuing Operations
   	Revenue		Core earnings		Operating profit		Profit before tax		Profit for the year
   FYE 2026	Million yen 1,540,000	% 2.3	Million yen 35,000	% 11.7	Million yen 30,000	% 1.1	Million yen 21,000	% 4.2	Million yen 8,000	% 252.7

   	Including Discontinued Operations
   	Profit for the year		Profit for the year attributable to owners of the parent		Basic earnings per share
   	Million yen	%	Million yen	%	Yen
   FYE 2026	8,000	260.6	8,000	299.7	27.85

   Note: Revision of consolidated operating performance forecast after the recent announcement: None

   • Notes

     1. Significant changes in the scope of consolidation during the period: None Newly consolidated company: None

        Excluded company: None

     2. Changes in accounting policies and accounting estimate

        1. Changes in accounting policies required by IFRS: None

        2. Changes in accounting policies due to other reasons: None

        3. Changes in accounting estimate: None

     3. Outstanding shares (Common shares)

        1. Outstanding shares including treasury shares (December 31, 2025) 287,514,957 shares (FY ended March 31, 2025) 287,340,460 shares

        2. Treasury shares (December 31, 2025)

           69,763 shares (FY ended March 31, 2025)

           66,074 shares

        3. Average number of shares during nine months (Apr - Dec) (December 31, 2025) 287,407,712 shares (December 31, 2024) 287,253,097 shares

• Review of the Japanese-language originals of the quarterly consolidated financial statements by certified public accountants or an audit firm: None

• Proper use of earnings forecasts, and other special matters (Cautionary statements with respect to forward-looking statements)

Performance forecast and other forward-looking statements contained in this report are based on information currently available and on certain assumptions deemed rational at the time of this report's release. Due to various circumstances, however, actual results may differ significantly from such statements.

(How to access supplementary financial results material)

The financial results presentation material "Q3 Results for the Fiscal Year Ending March 31, 2026 (IFRS) (From April 1, 2025 to December 31, 2025)" has been posted on TDnet and the Company's website on January 30, 2026.

(Quarterly consolidated financial results with the interim review report)

After the review of the Japanese-language originals of the quarterly consolidated financial statements by certified public accountants or an audit firm is completed, we plan to disclose the quarterly financial results with the review report attached.

Scheduled date of disclosure: February 6, 2026

1. Overview of Operating Results 2

2. Consolidated Financial Statements 2

   1. Consolidated Statement of Financial Position 2

   2. Consolidated Statements of Profit or Loss and Comprehensive Income 4

      Consolidated Statement of Profit or Loss 4

      Consolidated Statement of Comprehensive Income 5

   3. Consolidated Statement of Changes in Equity 6

   4. Consolidated Statement of Cash Flows 8

   5. Notes related to Financial Statements 10

(Applied Framework for Financial Reporting) 10

(Notes related to Going Concern Assumptions) 10

(Segment Information) 10

1. Overview of Operating Results

   An overview of operating results and financial position for the nine months ended December 31, 2025 is presented in the supplementary financial results material.

   The supplementary financial results material "Q3 Results for the Fiscal Year Ending March 31, 2026 (IFRS) (From April 1, 2025 to December 31, 2025)" has been posted on TDnet and the Company's website on January 30, 2026.

2. Consolidated Financial Statements

   1. Consolidated Statement of Financial Position

      (Unit: Millions of yen)

      	As	of	March 31, 2025	(As	End of Q3 of December 31, 2025)
      ASSETS
      Current assets:
      Cash and cash equivalents	Y	123,527		Y	125,060
      Trade and other receivables		283,914			312,647
      Inventories		243,926			265,343
      Contract assets		17,861			20,838
      Income taxes receivable		1,691			2,507
      Other financial assets		7,176			10,909
      Other current assets		22,993			23,178
      Subtotal	701,088			760,482
      Assets held for sale	153			2,505
      Total current assets	701,241			762,987
      Non-current assets:
      Property, plant and equipment	365,552			363,215
      Right-of-use assets	63,530			64,393
      Goodwill and other intangible assets	545,561			595,883
      Investment property	2,406			1,815
      Investments accounted for using the equity method	7,561			9,599
      Other financial assets	60,994			60,254
      Deferred tax assets	80,145			77,808
      Other non-current assets	3,814			3,109
      Total non-current assets	1,129,563			1,176,076
      Total assets	Y	1,830,804		Y	1,939,063

      (Unit: Millions of yen)

      	As	of	March 31, 2025	(As	End of Q3 of December 31, 2025)
      LIABILITIES AND EQUITY
      LIABILITIES
      Current liabilities:
      Trade and other payables	Y	246,802		Y	255,128
      Bonds and borrowings		190,337			189,622
      Lease liabilities		19,786			20,217
      Contract liabilities		9,850			11,716
      Income taxes payable		8,129			14,624
      Other financial liabilities		4,437			5,583
      Provisions		1,156			1,863
      Other current liabilities		91,286			93,946
      Total current liabilities	571,783			592,699
      Non-current liabilities:
      Bonds and borrowings	402,209			430,356
      Lease liabilities	45,468			45,052
      Other financial liabilities	29,581			29,032
      Net defined benefit liabilities	72,975			79,295
      Provisions	6,595			8,995
      Deferred tax liabilities	75,628			75,220
      Other non-current liabilities	6,495			7,551
      Total non-current liabilities	638,951			675,501
      Total liabilities	1,210,734			1,268,200
      EQUITY
      Share capital	68,654			68,807
      Capital surplus	221,587			221,627
      Treasury shares	-138			-144
      Other components of equity	121,146			179,928
      Retained earnings	206,637			197,631
      Equity attributable to owners of the parent	617,886			667,849
      Non-controlling interests	2,184			3,014
      Total equity	620,070			670,863
      Total liabilities and equity	Y	1,830,804		Y	1,939,063

   2. Consolidated Statements of Profit or Loss and Comprehensive Income Consolidated Statement of Profit or Loss

      (Unit: Millions of yen)

      	Nine months ended December 31, 2024		Nine months ended December 31, 2025
      Continuing operations Revenue	Y	1,140,456	Y	1,138,503
      Cost of sales		-763,412		-747,315
      GROSS PROFIT	377,044		391,188
      Selling, general and administrative expenses	-345,974		-354,682
      Other income	4,299		5,808
      Other expenses	-6,963		-11,864
      OPERATING PROFIT	28,406		30,450
      Finance income	2,910		2,968
      Finance costs	-10,166		-12,912
      Share of profit (loss) of associates accounted for using the equity method	126		-430
      PROFIT BEFORE TAX FROM CONTINUING OPERATIONS	21,276		20,076
      Income tax expenses	-16,686		-7,665
      PROFIT FROM CONTINUING OPERATIONS	4,590		12,411
      Discontinued operations
      LOSS FROM DISCONTINUED OPERATIONS	-59		-
      PROFIT	4,531		12,411
      Profit (loss) attributable to: Owners of the parent Continuing operations	4,342		11,807
      Discontinued operations	-59		-
      Total	4,283		11,807
      Non-controlling interests	248		604
      PROFIT	Y	4,531	Y	12,411

      (Unit: Yen)

      	Nine months ended December 31, 2024	Nine months ended December 31, 2025
      Earnings per share Basic (yen per share) Continuing operations Discontinued operations	15.11 -0.20	41.08 -
      Total Diluted (yen per share) Continuing operations Discontinued operations	14.91 15.11 -0.20	41.08 41.08 -
      Total	14.91	41.08

      Consolidated Statement of Comprehensive Income

      (Unit: Millions of yen)

      	Nine months ended December 31, 2024		Nine months ended December 31, 2025
      PROFIT OTHER COMPREHENSIVE INCOME Items that will not be reclassified subsequently to profit or loss Net fair value gain (loss) on equity instruments measured through other comprehensive income Remeasurements of defined benefit pension plans	Y	4,531 232 104	Y	12,411 2,939 2,201
      Total of items that will not be reclassified to profit or loss	336		5,140
      Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations	14,335		55,871
      Net fair value gain (loss) on hedging instruments entered into for cash flow hedges	-1,079		2,716
      Share of other comprehensive income of associates accounted for using the equity method	-4		302
      Total items that may be reclassified subsequently to profit or loss	13,252		58,889
      Other comprehensive income, net of tax	13,588		64,029
      TOTAL COMPREHENSIVE INCOME	18,119		76,440
      Total comprehensive income attributable to: Owners of the parent	17,679		75,638
      Non-controlling interests	440		802
      TOTAL COMPREHENSIVE INCOME	Y	18,119	Y	76,440

   3. Consolidated Statement of Changes in Equity

      (Unit: Millions of yen)

      	Equity attributable to owners of the parent
      	Share capital	Capital surplus	Treasury shares	Other components of equity
      				Net fair value gain (loss) on equity instruments measured through other comprehensive income	Remeasurements of defined benefit pension plans	Exchange differences on translation of foreign operations	Net fair value gain (loss) on hedging instruments entered into for cash flow hedges
      BALANCE AS OF APRIL 1, 2024	68,530	221,632	-126	16,743	-	107,390	1,443
      Profit Other comprehensive income	- -	- -	- -	- 232	- 104	- 14,143	- -1,079
      Total comprehensive income	-	-	-	232	104	14,143	-1,079
      Purchase of treasury shares	-	-	-10	-	-	-	-
      Disposal of treasury shares	-	-0	1	-	-	-	-
      Share-based payment transactions	124	-41	-	-	-	-	-
      Dividends Changes in interests in subsidiaries	-	-	-	-	-	-	-
      that do not result in the Group losing	-	-46	-	-	-	-	-
      control over the subsidiaries Transfers from other components of equity to retained earnings	-	-	-	-2	-104	-	-
      Total transactions with owners	124	-87	-9	-2	-104	-	-
      BALANCE AS OF DECEMBER 31, 2024	68,654	221,545	-135	16,973	-	121,533	364
      BALANCE AS OF APRIL 1, 2025	68,654	221,587	-138	16,295	-	104,296	558
      Profit Other comprehensive income	- -	- -	- -	- 2,939	- 2,201	- 55,673	- 2,716
      Total comprehensive income	-	-	-	2,939	2,201	55,673	2,716
      Purchase of treasury shares	-	-	-6	-	-	-	-
      Disposal of treasury shares	-	-0	0	-	-	-	-
      Share-based payment transactions	153	68	-	-	-	-	-
      Dividends Changes in interests in subsidiaries	-	-	-	-	-	-	-
      that do not result in the Group losing	-	-28	-	-	-	-	-
      control over the subsidiaries Transfers from other components of equity to retained earnings	-	-	-	-2,848	-2,201	-	-
      Total transactions with owners	153	40	-6	-2,848	-2,201	-	-
      BALANCE AS OF DECEMBER 31, 2025	68,807	221,627	-144	16,386	-	159,969	3,274

      (Unit: Millions of yen)

      	Equity attributable to owners of the parent				Non-controlling interests	Total equity
      	Other components of equity		Retained earnings (losses)	Total
      	Other	Total
      BALANCE AS OF APRIL 1, 2024	2	125,578	226,897	642,511	1,827	644,338
      Profit Other comprehensive income	- -4	- 13,396	4,283 -	4,283 13,396	248 192	4,531 13,588
      Total comprehensive income	-4	13,396	4,283	17,679	440	18,119
      Purchase of treasury shares Disposal of treasury shares Share-based payment transactions Dividends Changes in interests in subsidiaries that do not result in the Group losing control over the subsidiaries Transfers from other components of equity to retained earnings	- - - - - -	- - - - - -106	- - - -25,849 - 106	-10 1 83 -25,849 -46 -	- - - - 46 -	-10 1 83 -25,849 - -
      Total transactions with owners	-	-106	-25,743	-25,821	46	-25,775
      BALANCE AS OF DECEMBER 31, 2024	-2	138,868	205,437	634,369	2,313	636,682
      BALANCE AS OF APRIL 1, 2025	-3	121,146	206,637	617,886	2,184	620,070
      Profit Other comprehensive income	- 302	- 63,831	11,807 -	11,807 63,831	604 198	12,411 64,029
      Total comprehensive income	302	63,831	11,807	75,638	802	76,440
      Purchase of treasury shares Disposal of treasury shares Share-based payment transactions Dividends Changes in interests in subsidiaries that do not result in the Group losing control over the subsidiaries Transfers from other components of equity to retained earnings	- - - - - -	- - - - - -5,049	- - - -25,862 - 5,049	-6 0 221 -25,862 -28 -	- - - - 28 -	-6 0 221 -25,862 - -
      Total transactions with owners	-	-5,049	-20,813	-25,675	28	-25,647
      BALANCE AS OF DECEMBER 31, 2025	299	179,928	197,631	667,849	3,014	670,863

   4. Consolidated Statement of Cash Flows

      (Unit: Millions of yen)

      	Nine months ended December 31, 2024		Nine months ended December 31, 2025
      OPERATING ACTIVITIES: Profit before tax from continuing operations Loss before tax from discontinued operations	Y	21,276 -85	Y	20,076 -
      Profit before tax	21,191		20,076
      Depreciation and amortization	62,649		61,899
      Impairment losses	1,026		3,492
      Interest and dividend income	-2,451		-2,688
      Interest expense	9,054		8,520
      Gain from remeasurement relating to application of the equity method	-		-1,687
      Share of (profit) loss of associates accounted for using the equity method	-126		430
      Losses (gains) on disposal of property, plant and equipment	102		539
      Decrease (increase) in trade and other receivables	-10,443		-19,266
      Decrease (increase) in inventories	1,658		-7,932
      (Decrease) increase in trade and other payables	-2,850		-1,286
      (Decrease) increase in net defined benefit liabilities	-432		-2,222
      Other	-11,372		1,801
      Subtotal	68,006		61,676
      Interest received	1,361		1,454
      Dividends received	1,321		1,445
      Interest paid	-8,180		-8,072
      Income taxes paid	-5,728		-12,203
      Net cash generated by operating activities	Y	56,780	Y	44,300

      (Unit: Millions of yen)

      	Nine months ended December 31, 2024		Nine months ended December 31, 2025
      INVESTING ACTIVITIES:
      Decrease (increase) in time deposits	Y	3,209	Y	-42
      Purchase of property, plant and equipment		-22,767		-19,907
      Proceeds from disposal of property, plant and equipment		654		418
      Purchase of intangible assets		-7,752		-7,326
      Decrease (increase) in short-term loans receivable		5,096		-237
      Purchase of investments		-80,036		-153,992
      Proceeds from sale and redemption of investments		80,028		159,138
      Payments for absorption-type company split		-2,362		-
      Payments for acquisition of subsidiaries		-85		-169
      Other		799		86
      Net cash used in investing activities	Y	-23,216	Y	-22,031
      FINANCING ACTIVITIES:
      Dividends paid	Y	-25,849	Y	-25,862
      (Decrease) increase in short-term borrowings and commercial paper		16,167		2,001
      Proceeds from long-term borrowings		46,147		97,592
      Repayment of long-term borrowings		-78,304		-57,381
      Proceeds from issuance of bonds		35,835		-
      Redemption of bonds		-		-25,000
      Lease liabilities paid		-16,442		-17,416
      Other		32		-7
      Net cash used in financing activities	Y	-22,414	Y	-26,073
      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	11,150		-3,804
      CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	124,485		123,527
      EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES	2,788		5,337
      CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	Y	138,423	Y	125,060

   5. Notes related to Financial Statements (Applied Framework for Financial Reporting)

The Company's quarterly consolidated financial statements have been prepared in accordance with Article 5, Paragraph 2 of the Standards for the Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. and Nagoya Stock Exchange, Inc. (however, omission of description specified in Article 5, Paragraph 5 of the said standards is applied), and some of disclosure items and notes required by IAS 34 "Interim Financial Reporting" are omitted.

(Notes related to Going Concern Assumptions) Not applicable.

(Segment Information)

1. Description of Reportable Segments

   The Group's reportable segments are those for which discrete financial information is available among the Group's constituent units and regular evaluation by the Board of Directors is performed in order to decide how resources are allocated and performance is assessed.

   The Group is managed based on three reportable segments consisting of the "Water Technology Business" , the "Housing Technology Business" and the "Living Business" with the performance of their respective business units reported to the Board of Executive Officers or Board of Directors.

   The "Water Technology Business" includes manufacturing and sales of sanitaryware, faucets, bathroom fixtures, and other items. The "Housing Technology Business" includes manufacturing and sales of sashes, doors, shutters, curtain walls, and other items and provides services such as proposals for housing solutions and management of real estate. The "Living Business" includes manufacturing and sales of kitchen, vanity and wooden interior materials.

   Change in reporting segment classification

   In the fiscal year ended March 31, 2025, the Group reported in two segments, which include "Water Technology Business" and "Housing Technology Business". However, from the first quarter of the fiscal year ending March 31, 2026, the Group has decided to change to report in three segments, which include "Water Technology Business", "Housing Technology Business", and "Living Business".

   The reason for the reporting segments change is that the Group has established the new segment, "Living Business", by integrating the kitchen and washstand cabinet unit business from the "Water Technology Business" and the wooden interior materials business from the "Housing Technology Business". These businesses share many similarities in terms of products, manufacturing processes, and business models. This integration is part of the Group's focus on its strategic initiative to improve profitability of the Japan business and strengthen the Group's business structure, while also providing new value to end users.

   As a change, kitchen and washstand cabinet unit business, previously included in the "Water Technology Business," and the wooden interior materials business, previously included in the "Housing Technology Business," will be classified under the "Living Business" in the new segments.

   The segment information for the nine months ended December 31, 2024, is presented based on the new reportable segments classification.

2. Methods of measurement for the amounts of revenue and profit or loss for each reportable segment The accounting policies of each reportable segment are consistent with those for the preparation of the

   consolidated financial statements. Profit or loss for reportable segments is presented on the basis of core earnings or losses. Intersegment revenue or transfers are determined based on market prices.

3. Information on the amounts of revenue, profit or loss, and other items for each reportable segment For the nine months ended December 31, 2024 (April 1 through December 31, 2024)

(Unit: Millions of yen)

For the nine months ended December 31, 2025 (April 1 through December 31, 2025)

(Unit: Millions of yen)

(Notes)

1. Segment profit is core earnings which are defined as revenue less cost of sales and selling, general and administrative expenses.

2. A process of Segment profit reconciliations takes place for Company expenses that are not allocated to reportable segments. These expenses primarily represent costs associated with administrative departments, including Human Resources, General Affairs, Finance and other departments of the Company.